DECLAN MURPHY LTD

Executive Summary

DECLAN MURPHY LTD holds valuable fixed assets but is currently burdened by high long-term liabilities, resulting in negative net equity. While short-term liquidity appears stable, the company faces financial distress signals that require urgent restructuring and capital strengthening to restore health and viability. Active management of debt and asset utilization, combined with potential equity infusion, will improve the company’s financial prognosis.

DECLAN MURPHY LTD - Analysis Report

Company Number: 14283080

Analysis Date: 2025-07-29 21:15 UTC

Financial Health Assessment for DECLAN MURPHY LTD

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1. Financial Health Score: D

Explanation:
The company shows signs of financial distress with a negative net asset position (-£47,573) despite holding substantial fixed assets. The heavy long-term liabilities outweighs assets, indicating the company is "under medical supervision" financially. Limited liquidity and working capital constraints suggest vulnerability to cash flow shocks.

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2. Key Vital Signs:

Metric	Value (2024)	Interpretation
Fixed Assets	£193,707	Significant investment, likely property or equipment, but illiquid asset.
Current Assets	£34,233	Moderate short-term assets; cash position not specified separately.
Current Liabilities	£9,642	Manageable short-term debts relative to current assets.
Net Current Assets (Working Capital)	£24,591	Positive working capital suggests some short-term liquidity "health."
Creditors due after one year	£265,871	High long-term liabilities; "symptom" of financial strain or leveraged position.
Net Assets (Shareholders’ Funds)	-£47,573	Negative equity indicates company owes more than it owns; a "critical symptom."
Average Employees	1	Very small operation; likely minimal overhead costs.

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3. Diagnosis:

• Balance Sheet Condition:
  The company holds substantial fixed assets (£193,707), presumably real estate given the SIC code "Buying and selling of own real estate." However, the large long-term liabilities (£265,871) exceeding total assets have pushed net assets into negative territory (-£47,573). This is analogous to a patient with "high cholesterol" — the liabilities are weighing heavily on the company’s financial "arteries."

• Liquidity and Working Capital:
  Current assets exceed current liabilities by £24,591, indicating a short-term liquidity "pulse" that is stable. The company appears able to meet immediate obligations, but the overall financial health is compromised by the long-term debt burden.

• Operational Status and Profitability:
  The company is dormant as per filing category, meaning no significant trading activity during the year. This could be intentional (e.g., holding company or asset management) or a sign of business inactivity. The absence of profit and loss information limits assessment of profitability or cash flow health.

• Ownership and Control:
  Dr Declan Ciaran Murphy holds full control (75-100% shares and voting rights), indicating a centralized governance structure which can be agile but also concentrates financial risks.

• Overall Financial Condition:
  The company’s balance sheet reveals a "patient" with a chronic condition — significant assets but burdened with liabilities leading to negative net worth. While short-term liquidity is manageable, the negative equity is a red flag indicating financial distress or undercapitalization.

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4. Recommendations:

• Debt Restructuring:
  Engage with lenders to explore restructuring or refinancing long-term liabilities to reduce financial strain and improve solvency ratios. This is akin to reducing "blood pressure" to prevent further health deterioration.

• Asset Review and Monetization:
  Evaluate fixed assets for potential sale or leaseback arrangements to generate cash and reduce debt, improving liquidity and net asset position.

• Business Activity & Profitability:
  Consider activating trading operations or generating revenue streams to improve cash flow and profitability. Dormancy limits financial vitality and growth potential.

• Equity Injection:
  Owner or external investors should consider capital infusion to restore positive net worth and provide a buffer against financial shocks.

• Financial Monitoring:
  Implement regular financial health check-ups, including cash flow forecasting and debt servicing capacity assessments, to detect early "symptoms" of distress.

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